Price Structuring in Construction Contracts: Advantages and Pitfalls of GMP, Cost-Plus, and Fixed Cost Contracts

Description

Construction projects can run smoothly if all key parties to the project, including the owner, architect, contractor, subcontractors, and potentially others, clearly understand any pricing and scope limitations of each party, as most disputes center around these areas.

Construction counsel should work with key partners in any project to determine how best to structure pricing from their client’s perspective--an essential factor in finalizing a deal. Ensuring clearly defined scope of services and crafting well-structured contracts also play a crucial role. There are benefits and drawbacks between various association “form” contracts, and each should be carefully considered to ensure the one selected accomplishes the desired goals.

Although construction industry associations provide standard construction forms, construction counsel should not rely on the standard form alone! Counsel should tailor the contract to the particular needs of the project and parties, carefully negotiating critical provisions, and anticipating common areas of dispute.

Listen as our panel of construction practitioners experienced in routinely negotiating these types of contracts best addresses the ins and outs of these contracts and provides guidance on best practices. The panel will discuss critical clauses to include in the agreements and provide strategies for avoiding common drafting pitfalls and resolving contract disputes.